Oreva E-Bike

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					OREVA Power Bike



       Ajanta Manufacturing Limited
       Registered & Corporate Office: “Ajanta Corporate House”,
       8-A, National Highway, Morbi-363642, Gujarat (India).
       Ph: (02822) 304444


As rightly said “Vision is the art of seeing what is
invisible to others.”

At OREVA, we focused to achieve highest level of
customer satisfaction by continuously developing
innovative product range to deliver "value for money"
products to customers.

1.3 VISION :

                               “To create an economically viable, noise and pollution free
   environment with the launch of battery powered Electric two wheeler and to be product
   leader through the state of art manufacturing technologies & processes”
   The Quality Is the Essence of Business; the Credibility Is the Way to Success.

KIM-KALOL                                                                                    1
OREVA Power Bike


       An Electric Bike or Scooter is a battery operated vehicle that is very economical with low
maintenance cost and zero pollution. Electric two wheelers use the electrical technology of
rechargeable battery that converts the electrical energy into mechanical energy. The battery of an
EV can be charged easily using a power connection. There are many possible types of electric
motorized bicycles with several technologies available, varying in cost and complexity; direct-
drive and geared motor units are both used. An electric power-assist system may be added to
almost any pedal cycle using chain drive, belt drive, hub motors or friction drive. The power
levels of motors used are influenced by available legal categories and are often limited to under
700 watts.

       Electric bicycles use rechargeable batteries, electric motors and some form of control.
This can be a simple as an on-off switch but is more usually an electronic pulse width
modulation control. Electric bicycles developed in Switzerland in the late 1980s for the Tour de
Sol solar vehicle race came with solar charging stations but these were later fixed on roofs and
connected so as to feed into the electric mains.

       The bicycles were then charged from the mains, as is common today. Battery systems in
use include lead-acid, NiCd, NiMH and Li-ion batteries.

       Electric motorized bicycles can be power-on-demand, where the motor is activated by a
handlebar mounted throttle, and/or a pedelec (from pedal electric), also known as electric assist,
where the electric motor is regulated by pedalling. These have a sensor to detect the pedalling
speed, the pedalling force, or both. An electronic controller provides assistance as a function of
the sensor inputs, the vehicle speed and the required force. Most controllers also provide for
manual adjustment.

       Range is a key consideration with electric bikes, and is affected by factors such as motor
efficiency, battery capacity, efficiency of the driving electronics, aerodynamics, hills and weight
of the bike and rider. The range of an electric bike is usually stated as somewhere between 7 km
(uphill on electric power only) to 70 km (minimum assistance) and is highly dependent on

KIM-KALOL                                                                                        2
OREVA Power Bike

whether or not the bike is tested on flat roads or hills. Some manufacturers, such as the Canadian
BionX or American E+ (manufactured by Electric Motion Systems), have the option of using
regenerative braking, the motor acts as a generator to slow the bike down prior to the brake pads
engaging. This is useful for extending the range and the life of brake pads and wheel rims. There
are also experiments using fuel cells. e.g. the PHB. Some experiments have also been undertaken
with super capacitors to supplement or replace batteries for cars and some SUVS.

        The energy costs of operating electric bicycles are small, but there can be considerable
battery replacement costs. Riding an electric bicycle to work or to the store instead of taking a
car has long term financial gains. Solar power is possible when charging an electric bicycle.

WHY E-Bikes:

        Global warming is a major concern all around and to save Mother Earth, there are several
policies, promises and pledges. With the ever increasing emission of greenhouse gases, there is
an increased fear of environment pollution at every step. With modern technology and
innovation, transportation and communication have undergone a paradigm shift. Along with this,
we are also experiencing the negative effects of industrialization in the form of global warming.
Under these circumstances, when there are traffic jams, when you need to run an errand at an
odd hour of the day, when you need to go to workplace quickly, you stumble and fumble as there
are so many vehicles emitting soot and CO2 polluting the air incessantly. With increased number
of fossil-fuel dependent vehicles, they not only add to greater level of pollution but are also
leading to depletion of fuel resource. It is here that automobile companies felt the need to
innovate motorized vehicle that will get charged through electricity and will not be depending on
fossil fuels.

        This led to expansion of eco-friendly initiatives and many automobile manufacturing
companies invested in research and development to bring forth electric bikes that will help
people save a few bucks by reducing consumption of already spiraling fuel price, besides
fighting global warming. Most electric bikes are emission-free bikes and this is the USP of the
company’s manufacturing them in these days of global warming.

KIM-KALOL                                                                                       3
OREVA Power Bike

        It will not add to urban pollution. The only thing required is to keep this bike charged
with a battery. Electric bike manufacturing is considered as a grass root movement away from
fossil fuels.

        Definitely, electric bikes are not the only answer to our environment problem, but it
definitely will help us to treat environment better. These electric bikes will not make pollution
worse and that makes e bikes environmentally safe vehicle. It can be charged with the help of
inverter and generator too. In one charge, these electric bikes can go up to 50km and has no tail
pipe emissions. It also makes no noise while under operation. The best part of electric vehicles is
that they can be run with no registration and license.

        In the manufacture and production of electric bikes, the main constraint is the battery in
the bumpy roads. Batteries get deteriorated at a fast rate due to excessive current fluctuation.
Batteries need frequent replacement and that is the greatest concern for the most Indian
companies who manufacture these electric bikes. The replacement cost of the batteries hover
around Rs. 5000, but otherwise the maintenance cost of electric bikes is almost negligible.
There is a growing market potential of electric bikes in India; however, speed might not be the
attractive feature of these e-bikes, they will cater you to run the short distances maybe home to
office or home to college; but these are safer vehicles with benefit of almost no pollution. So
instead of kicking a 100 cc motorbike, just press the start button of electric bike and vroom your
way friendly on the roads.

        It is evident that electric bikes can reduce the air pollution. But there are also some
environmental problems caused due to these electric bikes. Disposal of worn out batteries can be
a cause of major concern for environmentalists. If this can be addressed, electric bikes can
definitely reduce environment pollution.

KIM-KALOL                                                                                        4
OREVA Power Bike

Benefits Of OREVA bike Vis-A-Vis Ic Engine Scooters

Particulars                 OREVA E-Bike              Ic Engine Scooter

Weight of the scooty        75 kgs                    84 kgs

Range (Kms) / Litre of
                            70/ Charge                50 / Ltr.

Cost / 100 Kms              Rs. 5.1*                  Rs. 110 (2 Ltrs)

Cost of Fuel : Rs/Km        Rs. 0.051*                Rs. 2.00

Cost of Fuel - Power over
                            1530.00                   33000
30,000 Kms in Rs

Service and Maintenance
                            1,000.00                  9,000.00
over 30,000 Kms, Rs

Battery       Replacement 10000 set of 4 batteries                       -- N.A. --

KIM-KALOL                                                                             5
OREVA Power Bike

over 30,000 Kms, Rs

Total Expense towards
                               12,530.00   42,000.00
fuel for 30,000 Kms, Rs

Cost    of     Scooter    Ex
                               28500       32,000.00
Showroom (Rs)

Registration (Rs)              --N.A.--    620

Registration Tax (Rs)          --N.A.--    2,480.00

Insurance (Rs)                 478         809

Handling (Rs)                  100         100

Total   Investment       on
                               29,078.00   36,009.00
Scooter (Rs)

Total      Investment     +
Running cost for 30,000 41608.00           78,009.00
Kms (Rs)

KIM-KALOL                                              6
OREVA Power Bike

1.4 INDSUTRY PROFILE OF Two Wheelers :-

       The Indian two-wheeler industry recorded sales volumes of 3.4 million units in Q3,
2011-12, a growth of 11.0 percent (Year-over-Year) but flat (Quarter-over-Quarter). Although
the YoY volume growth of the industry remained in double digits, the pace of growth during the
last quarter was at its lowest gear in the last three years, says an ICRA report.

       The deceleration in growth was contributed mainly by the motorcycles segment which
grew at a much lower rate of 9.2 percent (Year-over-Year) in Q3, 2011-12, even as the scooters
segment continued to post 20 percent + (Year-over-Year) expansion. Overall, ICRA expects the
domestic two-wheeler industry to report a volume growth of 13 percent in 2011-12 as ICRA
expects growth to fade further in Q4, 2011-12 due to base effect.

KIM-KALOL                                                                                   7
OREVA Power Bike

       In an environment where the northward movement of inflation, fuel prices and interest
rates has been the nemesis of the Indian automobile industry at large, the two-wheeler industry
has been the most resilient reflected in its healthy volume growth of 15 percent (YoY) in nine
months, 2011-12. The growth has been supported by various structural positives associated with
the domestic two-wheeler industry including favorable demographic profile, moderate two-
wheeler penetration levels (in relation to several other emerging markets), under developed
public transport system, growing urbanization and expected strong replacement demand, besides
moderate share of financed purchases.

       ICRA expects these strengths, coupled with the OEMs’ thrust on exports, to aid the two-
wheeler industry to report a volume CAGR of 10-12 percent over the medium term to reach a
size of 21-23 million units (domestic + exports) by 2015-16.

       The domestic motorcycles segment recorded a volume growth of 9.2 percent YoY in Q3,
2011-12 and as has been the trend over the last several quarters, the 125 cc segment of
motorcycles grew much faster than the 75-125 cc segment. With this, the contribution of the 125
cc segment to the total motorcycles segment increased from 26 percent in 2009-10 to 29 percent
in nine months, 2011-12.

KIM-KALOL                                                                                    8
OREVA Power Bike

       The Indian motorcycles segment continues to be dominated by Hero MotoCorp which
has maintained its market share at over 55 percent in the domestic motorcycles segment over the
last five quarters (Refer Chart 2).

Market share trends

       Overall, Honda Motorcycles continued to maintain its leadership position in the scooters
segment through its flagship brand Honda Activa (besides Honda Aviator and Honda Dio)
enjoying a market share of 50.7 percent in Q3, 2011-12. While capacity shortfall at Honda's
plant at Manesar in Haryana had restricted its volume growth in the recent past, the company
began commercial production at its new facility at Tapukara in Rajasthan in July 2011.

       This has allowed Honda to consolidate its market position over the last two quarters.
However, Hero MotoCorp's demonstrated success in improving market share (through its sole
brand Hero Pleasure), coupled with new scooter models proposed to be launched by Hero
MotoCorp, TVS Motor Co and India Yamaha over the short to medium could imply shrinkage of
market share gap between the market leader and others over time.

Hero MotoCorp

       In Q3, 2011-12, Hero MotoCorp's revenues at Rs 5,983.6 crore grew by 16.9 percent
YoY and 3.4 percent QoQ, supported by 11.3 percent YoY and 2.9 percent QoQ increase in sales
volumes and five percent YoY and 0.5 percent QoQ increase in average realisations. Till 2010-
11, exports accounted for 2.5 percent of the company's sales volumes. Although, since the time
Hero MotoCorp's JV agreement with its erstwhile partner Honda Motor Corp of Japan ceded in
December 2010, the company has been unable to scale up its exports much. It is likely to get
more aggressive on the exports front as and when its fourth manufacturing plant gets established
(for which, the company is scouting for a location near one of the ports).

KIM-KALOL                                                                                     9
OREVA Power Bike

Bajaj Auto

       In Q3, 2011-12, Bajaj Auto's revenues at Rs 5,063.2 crore grew by 21.2 percent YoY but
declined by 3.9 percent QoQ, led by continued strong exports growth in both the two-wheeler as
well as the three-wheeler segments. Increase in average realisation due to both price increase as
well as favourable change in product mix and favourable currency movement on exports.

TVS Motor Co

       In Q3, 2011-12, TVS’ Net Sales at Rs. 1,762.2 Crore grew by 7.0 percent YoY but
declined by 11.5 percent QoQ. While the company’s total two-wheeler volumes in Q3, 2011-12
grew by 0.9 percent YoY and total three-wheeler volumes declined by 11.0 percent YoY, the
revenue growth was much higher by virtue of favorable change in product mix.
Thus, notwithstanding the increase in proportion of low-ticket mopeds in TVS’s domestic two-
wheeler sales volumes from 39 percent in Q3, 2010-11 to 41 percent in Q3, 2011-12, the
increase in proportion of 100 cc scooter (TVS Wego) and 125 cc motorcycles (mainly TVS
Apache    RTR      family)   in   its   sales   mix   enabled   it   to   improve   its   average
realization YoY.

KIM-KALOL                                                                                     10
OREVA Power Bike

   P                                              Threat of
   O                                               New
   T                                              Entrants -
   E                                               LOW

                    Bargaining                    Rivalry      Bargaining
   F                Power of                      Among        Power of
   O                Customers-                                 Suppliers -
   R                                              Firms-
                     HIGH                                       Low

   L                                              Threat of
   S                                              Substitute
   I                                              Products-
                                                  Low to

In any P5F analysis, one must examine the following:

   1. The threat of new entrants.
   2. The bargaining power of buyers/customers.
   3. The threat of substitute products.
   4. The amount of bargaining power suppliers have.
   5. The amount of rivalry among competitors.

KIM-KALOL                                                             11
OREVA Power Bike

1. The threat of new entrants :

In most markets, the capital and expertise needed to setup an auto or parts manufacturing facility,
would be a great enough barrier to entry to prevent many new entrants from setting up.

However, given India's incredible growth forecasts, infrastructure progress (especially new and
better roads), and ever-expanding financing options to rural residents, the market is attractive. As
such, we expect the threat of new entrants to be high.

Result: Unfavorable

2.The bargaining power of buyers/customers :

Some of The Components in E-Bike Two-Wheeler industry are very common for all the two-
wheelers industries like Steel, Aluminums, Tires and Tubes. There Materials are Available in
abundant. This makes them to Drive a Smooth Production of Their Finished Products.

Result: Unfavorable

3.The threat of substitute products :

Substitute products for E-Bike industries are Two-Wheelers, Auto transportation and even low-end cars,
but people using E-Bike can only use the service Two-Wheelers or of buses and auto as a substitute
product. Sometimes high-end motorcycles is a substitute product for the people using E-Bikes. Normal
Bikes to hi-tech cc Bikes which is threat to E-Bike industry.

Result: Unfavorable

KIM-KALOL                                                                                        12
OREVA Power Bike

4.The Amount of Bargaining Power Suppliers Have :

It is likely that the suppliers to the manufacturers have considerable bargaining power. They are
not held ransom by one single manufacturer as they can market their products to any of the
others in India.

Result: Unfavorable

5.The Amount of Rivalry Among Competitors :

The key players in E-Bike industries are Electrotherm India Limited, Emmel Wheelers and Hero
Electric. The other players are Ultra Motor, Mark Bike and Yamasaki. Hero Electric has
announced to introduce an electric car by 2013. The car will use capacitors for instant charging.
Mahindra has plans to launch a four-seater that will run on lead acid battery initially. The
company might opt for nickel metal hydride later on.

Result: Unfavorable

KIM-KALOL                                                                                     13
OREVA Power Bike

One Of The Segment In Two-Wheelers is E-Bike

       The face of auto industry that was redefined with the invention of fuel-efficient four-
stroke engine technology is all set to see dawn of a new era in two-wheeler industry. It's not
petrol or diesel or any other fuel, but its electricity that have initiated a revolution in two-wheeler
industry in India.

       Indian two-wheeler industry has embraced the new concept of Electric Bikes and
Scooters that are very popular mode of personal transport in the developed countries like
America, Japan and China. With the rising cost of fuel at International and national level,
increasing levels of pollution and congestion in transport system specially in Urban areas, higher
running and maintenance cost of vehicle, the electrically charged bikes or scooters have very
bright future in area of personal transportation.

       “It is estimated that India’s fossil fuel dependency on other countries currently from 70%
to 82% in 2012. If we can have three lakh Electric Vehicles on the roads by 2020, including
three-wheelers, cars, and scooters, this could result in a reduction of over 16 lakh metric tons of
CO, NOx and HC by 2020,savings of over Rs 3,700 crore in foreign exchange and significant
health costs savings”

     Economic conditions around the world have been very encouraging. Global growth is
increasing year by year .While the Chinese economy is growing at around 10% without any signs
of slow down, the Indian economy is also continuing to grow at more than 8%. In the coming
years, and Indian economy will be booming owing to the heavy demand on infrastructure.
Energy sector is growing by leaps and bounds as it is receiving the highest attention of both the
State Governments and Central Government.

       India has moved from an agrarian economy to a manufacturing economy. The
manufacturing sector now contributes around one-fourth of the total GDP and the industrial
output has now crossed USD 65 Billion in value. Global steel production is continuing its

KIM-KALOL                                                                                           14
OREVA Power Bike

growth. In spite of some control measures adopted by Chinese Government the crude steel
registered an impressive growth and has crossed 450 million tons.

       India is also witnessing a huge growth in steel production and it is expected that steel
industry will continue to grow by more than 12% per annum.

       Sustainable economic growth of India as well as rest of the world will depend on
effective energy planning. Nearly 40% of the world’s energy comes from petroleum. Natural gas
contributes to another 20% and these two natural resources account for 60% of the world’s
energy. The growth in consumption of oil and natural gas in the past has been such that the
consumption has been doubling every 15 years. This trend is likely to continue and will lead to
complete depletion of natural resources in next 30 years. It is significant to note that more than
20% of the world’s total primary energy is consumed in transportation.

       There are more than 410 million cars currently in the world and in another 20 years the
automobile population will reach one billion mark. It is also significant to note that after 1970
the new oil discoveries have been very few and any new discoveries will not make any
significant contribution to the world’s energy pool.

       Transportation sector which consumes a large share of energy resource of the country
also contributes significantly towards pollution. So the main mission is to provide vehicles which
are emission free, which do not use petroleum products and which are inexpensive to acquire and
operate. Our launch of battery operated Bikes has been highly successful and Oreva is now
developing several new vehicles for the Indian market. Our launch in India has developed
interest for our vehicles for international market also and in the future we will be exporting these
vehicles to other countries. Oreva will continue to provide leadership in this segment by
delivering innovative, cost effective, practical and environmental friendly electric vehicles.

       Economic and environmental forces are frequently pitted against each other and many a
times the financial cost of environmentally friendly technologies and goods is so high that one
has to strike a balance or look for Government subsidies. Our Electric Vehicles are unique in
this aspect as they are not only economical but also environment friendly.

KIM-KALOL                                                                                        15
OREVA Power Bike


       Most People are not aware of how long electric bicycles have been around you might
think its something new since the recent fuel shortage and cost spikes we all hate, or even
because of Global Warming and the whole go green awareness. But not true although it might be
one reason for their recent surge in popularity also the technology has improved 10 fold. In the
1890s, electric bicycles were documented within various U.S. patents. For example, on 31
December 1895 Ogden Bolton Jr. was granted U.S. Patent 552,271 for a battery-powered bicycle
with “6-pole brush-and-commutator direct current (DC) hub motor mounted in the rear wheel.”
There were no gears and the motor could draw up to 100 amperes (A) from a 10-V battery.

       Two years later, in 1897, Hosea W. Libbey of Boston invented an electric bicycle (U.S.
Patent 596,272) that was propelled by a “double electric motor.” The motor was designed within
the hub of the crankshaft axle. This model was later re-invented and imitated in the late 1990s by
Giant Lafree electric bicycles.

       By 1898 a rear wheel drive electric bicycle, which used a driving belt along the outside
edge of the wheel was patented by Mathew J. Steffens. Also, the 1899 U.S. Patent 627,066 by
John Schnepf depicted a rear wheel friction “roller-wheel” style drive electric bicycle. Schnepf's
invention was later re-examined and expanded in 1969 by G.A. Wood Jr. with his U.S. Patent
3,431,994. Wood’s device used 4 fractional horsepower motors; each rated less than ½
horsepower and connected through a series of gears.

       Torque sensors and power controls were developed in the late 1990s. For example,
Takada Yutky of Japan filed a patent in 1997 for such a device. In 1992 Vector Services Limited
offered and sold an electric bicycle dubbed Zike. The bicycle included Nickel-cadmium batteries
that were built into a frame member and included an 850 g permanent-magnet motor. Despite the
Zike, in 1992 hardly any commercial electric bicycles were available. It wasn’t until 1998 when
there were at least 49 different bikes. Production grew from 1993 to 2004 by an estimated 35%.
By Contrast, according to Gardner, in 1995 regular bicycle production decreased from its peak
107 million units. Some of the less expensive electric bicycles used bulky lead acid batteries,
whereas newer models generally used NiMH, NiCd and/or Li-ion batteries which offered lighter,

KIM-KALOL                                                                                      16
OREVA Power Bike

denser capacity batteries. The end benefits usually varied from manufacturer; however, in
general there was an increase in range and speed. By 2004 electric bicycles where manufactured
by Currie Technologies, EV Global, Optibike, Giante Lite, Merida, ZAP.

           Electric bicycles are very common in many cities of eastern China, such as Yangzhou; in
some areas they may outnumber motorcycles or regular bicycles By 2001 the terms, E-Bikes,
power bike, pedelec, assisted bicycle and power-assisted bicycle where commonly used to
describe electric bicycles. E-bike, according to Google, is a term that has increased in trend. This
term generally referred to an electric bicycle which used a throttle. The terms Electric Motorbike
or E-Motorbike have been used to describe more powerful models which attain up to 80 km/h.
PEDEGO Electric Bicycles are taking the nation by storm, offering a stylish, and colourful
electric bikes that use a throttle control for power.

           In a parallel hybrid motorized bicycle, such as the aforementioned 1897 invention by
Hosea W. Libbey, human and motor inputs are mechanically coupled either in the bottom
bracket, the rear or the front wheel, whereas in a (mechanical) series hybrid cycle, the human and
motor inputs are coupled through differential gearing. In an (electronic) series hybrid cycle,
human power is converted into electricity and is fed directly into the motor and mostly additional
electricity is supplied from a battery.

           Pedelec is a European term that generally referred to an electric bicycle that incorporated
a torque and/or a speed sensor and/or a power controller that delivered a proportionate level of
assist and only ran when the rider pedalled. On the opposite side, a Noped is a term used by the
Ministry of Transportation of Ontario for similar type vehicles which do not have pedals or in
which the pedals have been removed from their motorized bicycle. Finally, Assist Bicycle is the
technical term used to describe such a vehicle and Power-Assisted Bicycle is used in the
Canadian Federal Legislation, but is carefully defined to only apply to electric motor assist, and
specifically excludes internal combustion engines (though this is not the case in the United

KIM-KALOL                                                                                          17
OREVA Power Bike

       Today, China is the world's leading producer of electric bicycles. According to the data
of the China Bicycle Association, a government-chartered industry group, in 2004 China's
manufacturers sold 7.5 million electric bicycles nationwide, which was almost twice the year
2003 sales; domestic sales reached 10 million in 2005, and 16 to 18 million in 2006.By 2007,
electric bicycles were thought to make up 10 to 20 percent of all two-wheeled vehicles on the
streets of many major cities. A typical unit requires 8 hours to charge the battery, which provides
the range of 25–30 miles (40–50 km),at the speed of around 20 km/h.A large number of such
vehicles is exported from China as well (3 million units, worth 40 billion yuan ($5.8 billion), in
the year 2006 alone)

       We are looking at practical and true figures of current Indian markets. Current year 2009-
10 will end up with Indian total e-bikes sales at 120K bikes. Every year market is expected to
rise initially by 100% and then by 200%. A lots of bikes we will see on the road in coming 5
years, just like bicycles and petrol scooters.

       As people started accepting the technology and limitations of e-bikes, a definite positive
trends has started now. Due to collective efforts by manufacturers, Ads, PRs, dealership
networks hard work, people accepting e-bikes in a middle segment between bicycle and petrol
scooter. If you see both ends i.e. bicycles and petrol bikes are showing very attractive sales
figures. The middle segment of e-bikes has turned now to enter in the high growth curve. Electric
Bikes companies are highly optimistic about the e-bikes future. According to a survey India may
surpass china in numbers of e-bikes sale by 6-8 years.

       Indian manufacturers of electric bikes, or e-bikes, are gearing up for what they call a
second wave of growth for these “plug and play” bikes. They say they are on the verge of
launching faster versions of their bikes and this would blunt the edge of traditional two-wheeler
bikes in the country. Electric bikes operate on a chargeable battery and do not require petrol to
operate. All the e-bikes today do not require registration or license. This means they have to
follow certain statutory norms that specify that the speed of such two-wheelers should not be
more than 25kmph.

KIM-KALOL                                                                                       18
OREVA Power Bike

       “Some of the e- bikes companies are now all set to launch a new e-bike—that would
have an engine of 750 watts, compared with 250 watt engines that existing e-bikes have. It would
require registration and license to ride and the average speed would be 35-40 kmph.

       This would help explode the demand for e-bikes in India,” says Avinash Bhandari,
director of Ahmedabad-based Electro herm (India) Ltd one of the major Electric bikes
manufacturers, He says “The real game would begin when we launch our high powered engine e-
bike to compete with TVS Scooty Pep+ and Honda Activa”. Citing the reason for the new
models, Bhandari said that potential buyers were apprehensive as they believed that a scooter has
to look like a scooter and must carry more weight at higher speeds. “To a common user,
performance and affordability is important. It does not matter what fuel is being used or no fuel
is being used,” he added.

       Ganesh Mahalingam, managing director of Ultra Motors Co., another entity that
manufactures e-bike in joint venture with Hero Electric of Hero Cycles group, says that they too
are working on a faster electric vehicle that would have a speed of about 50-70kmph.

       “It would take us six more months but remember that the electric bike market has come
of age only in last six months as, unlike in the west where e-bike is a lifestyle product and for
some an environment friendly technology, in India it is an economical mode of transportation.
Primarily it is an aam admi (common man) vehicle as it is 10 times cheaper to operate an electric
two-wheeler that the traditional petrol bike,” Mahalingam said.

       Hero Cycles Ltd, like Electro herm, launched its range of Hero electric ultra-powered
electric two-wheelers in seven variants of e-bikes and e-scooters branded as Hero Electric and
priced between Rs14,300 and Rs19,000. The e-scooters are in the range of Rs22,000-28,000.
With no organized body to represent these manufacturers, industry players guess that there are
between 75 and 80 players manufacturing e-bikes in India.

       Still, key hurdles remain for the e-bike industry. One of the major issues is that many
small players are flooding the markets with a product that doesn’t meet statutory requirements.
“They are not supposed to have a speed of over 25kmph, but many do as they use a motor of
higher capacity.

KIM-KALOL                                                                                     19
OREVA Power Bike

       Some of them launch their vehicle and also give warranty but do not have adequate
dealer or service network. They also do not have spare parts. All this creates a very negative
image in the minds of people and can badly affect the growth of this industry in the medium and
long run,” claims Bhandari.

KIM-KALOL                                                                                   20
OREVA Power Bike


       Our Products are developed to meet the needs of mass market consumers in India. Our
core philosophy is to maximize “value for money” by offering quality products at affordable
prices. Our primary focus has remained on the Indian middle income consumer, which
constitutes a majority of the total market for any consumer product in India. We believe that this
philosophy has been instrumental in the success of our businesses.

Strong Brands

       All of our products are sold primarily under the brand name “OREVA”. Our “OREVA
Power Savers” brand is well recognized both in city centers and small villages and is associated
with products of value and quality. According to AC Nielsen in Market Information Report of
ACNielsen ORG-MARG Pvt. Limited dated February 4, 2008, we ranked second in sales
volume of CFLs in India in twelve months ending December 2007. In fiscal 2007, we sold 17.81
million units of CFLs. Similarly, our vitrified tiles brand “OREVA Grantile Forever” is well
recognized in the market. In fiscal 2007, we sold 4.29 million square meters of vitrified tiles.

       We believe that we will be able to leverage the strength of our brand to market and sell
new products. For example, our new E-Bike product will be marketed under the “OREVA E
Bike” brand. The use of the “OREVA” name enables us to tap into a consumer base that has had
experience with our products and is comfortable with them.

Central Manufacturing Facility with Backward Integration

       We own and operate a large integrated manufacturing facility in Samakhayali village in
Bhachau taluka in the district of Kutch in Gujarat where we manufacture products for each of our
divisions. Our fully integrated manufacturing facilities allow us to benefit from economies of
scale. For example, we process and manufacture a variety of plastic components and parts,
electronic products and components and metal mould components which we use in each of our
divisions. We seek to backward integrate our manufacturing chain whenever possible in order to
reduce input costs and increase customer value.

KIM-KALOL                                                                                          21
OREVA Power Bike

       For example, we manufacture critical components like plastic parts, eecores transformers,
beed rings and printed circuit boards for our CFLs. We plan to build a glass tube manufacturing
plant during fiscal year 2009 in order to further integrate our CFL division.

Leveraging our Promoter Group’s Complementary Technologies and Processes

       We leverage our Promoter Group’s experience in technologies and processes to
manufacture, backward integrate and scale-up our existing and proposed products. For example,
in our CFL manufacturing process, we used our Promoter Group’s knowledge of, and experience
with, plastics processing, metalworking and electronic component manufacturing and
assembling. We intend to use complementary technologies and skill sets in the manufacture of

Strong Sourcing Capabilities

       We benefit from a procurement network with international and domestic manufacturers
and suppliers, which was developed through our management’s and Promoter Group’s efforts
over a number of years in related businesses. Further, in many cases, our management and
Promoter Group have developed relationships directly with parts and components manufacturers
in China, instead of relying upon distributors and middlemen. These relationships have inured to
our benefit by having provided us with important access to raw materials, suppliers and
component manufacturers and resulting lower costs than would otherwise be available to us.

Nationwide sales and Distribution Network

       We have a nationwide sales and distribution network in our own offices, showrooms and
depots. For CFLs, at August 31, 2008, we had 126 stockiest, 1,750 distributors, 15,319 retailers,
one depot managed by a clearing and forwarding agent in Guwahati and 60 showrooms.

       For vitrified tiles, at August 31, 2008, we had 38 distributors, 373 dealers. We have our
Company depot at Bangalore and four depots that are managed by clearing and forwarding
agents. For our ACPs, at August 31, 2008, we had 27 dealers, two depots managed by a clearing
and forwarding agent, and two showrooms in each of Ahmedabad and Morbi.

KIM-KALOL                                                                                     22
OREVA Power Bike

       We began marketing our CFLs in villages, small towns and district level cities through a
network of distributors. Also, we made our CFLs available in a wide variety of retail outlets,
including general stores, grocery stores, novelty stores, medical supply stores, newspaper shops,
watch showrooms and seasonal stores. Using this method, we achieved nationwide distribution
in a relatively short period of time. We believe that our distribution expertise will assist us in
creating and growing a nationwide distribution network for our E-Bikes. At August 31, 2008, we
had two showrooms and 36 dealers for E-Bikes.

Strong In-house Research and Development

       Before we determine to introduce a new product, such as our E-Bikes, we undertake
research from both the marketing and manufacturing perspectives. We employ an in-house
research and development team whose main objective is to work out cost-effective
manufacturing processes and maintain quality standards for our products and to develop
economical and efficient manufacturing solutions. As of August 31, 2008, we have one new
CFL product and one new tile product under development.

Experienced and Proven Management Team

       Our Promoter has extensive experience in manufacturing and marketing a wide range of
consumer products. Members of our management team also have years of experience in the
consumer product business, and have been chosen for their ability to effectively execute plans
and policies.

KIM-KALOL                                                                                      23
OREVA Power Bike


       Ajanta manufacturing ltd. was founded in 1994 by Shri. Odhavji Bhai R Patel, founder of
Ajanta Transistor Clock Manufacturing Company, which was established in 1971 and engaged in
the manufacturing of wall clocks under the “Ajanta” brand name. Their Promoter Group
Companies are based in Morbi, Gujarat (approximately 50 kilometers from their manufacturing
facility). Their Promoter Group Companies manufacture and sell a broad range of products,
including consumer and electronic products and home appliances.


    CFL Division:

       According to AC Nielsen in its Market Information Report of ACNielsen ORG-MARG
Pvt. Ltd dated February 4, 2008, They ranked second in sales volume of CFLs in India in twelve
months ended December 2007. They launched their CFL division in Fiscal 2006 and their CFL
plant has a current daily production capacity of approximately 200,000 units. They believe that
They played a role in raising the consumer awareness about CFLs in the Indian consumer market
by introducing CFLs at competitive prices. During fiscal 2009, They expect to complete their
backward integration of CFL production by building a manufacturing facility that will allow
them to produce, rather than purchase, glass tubes for CFLs. Glass tubes are approximately 45%
of CFL component costs, and They believe that manufacturing glass tubes in-house will enable
them to reduce their production costs and improve their price competitiveness.

    Vitrified Tiles Division:

       Vitrified tile products provide a low-cost, better quality flooring alternative for the Indian
consumer market. They produce vitrified tiles in a number of colors and designs. They launched
their vitrified tile division in Fiscal 2006, and They have five production lines capable of
producing approximately 30,000 square meters of vitrified tiles per day. Their vitrified tiles
plant is the largest in India in terms of installed manufacturing capacity (Source: GITCO,
January 2008) and contains continuous ball mills, kilns that each measure approximately 205

KIM-KALOL                                                                                         24
OREVA Power Bike

meters, 48-head polishing machines and 5,000 metric tone hydraulic presses. In addition, They
also have their own coal gasification facility within the plant.

    ACP Division:

       They launched ACP division in April 2007. ACPs are themed in the building industry for
interior and exterior paneling. Their ACP division has the capacity to produce 400,000 square
meters of ACP per year.

    E-Bikes Division:

       They have a manufacturing facility to produce their own E Bikes which are specifically
designed and adapted for the Indian market. They had assembled a small number of E-bikes on a
trial basis. These E-bikes are assembled by them from parts manufactured by third parties. They
determined that going forward it would be in their best interests to manufacture E-bikes in-
house. Production will take place in two phases. The first phase of their E-Bike facility will have
a capacity of 400 bikes per day (“Phase I”). In phase two, They propose to scale up their
production capacity to 2,000 bikes per day (“Phase II”). Phase I production of E-Bikes recently
commenced in late March 2008. First production from Phase II is expected to commence by June
30, 2009. Unlike the majority of E-Bike manufacturers in India, who They believe are primarily
product assemblers, by the end of Phase II, They plan to manufacture approximately 85% of the
components necessary to produce E-Bikes in their own integrated, in-house facility in Gujarat.
Batteries constitute approximately 40% of E-Bike component costs. While They currently import
batteries, They intend to manufacture batteries in-house with full scale battery production
expected by the end of Phase II. They have an India-wide distribution network for each of their
products. They export their CFLs to the United Arab Emirates and their vitrified tiles to the
United Arab Emirates, Qatar, Iraq and the west Indies. Similarly, They procure their materials
directly from manufacturers and producers, principally in China, Korea, Taiwan and Thailand.
They believe that their distribution expertise will assist them in creating and growing a
nationwide distribution network for E-Bikes. They plan to sell their E-Bikes under the
“OREVA” brand name through their dealer network, initially in western India and gradually all
over India.

KIM-KALOL                                                                                       25
OREVA Power Bike


KIM-KALOL           26
OREVA Power Bike


Odhavjibhai Patel | Chairman

Odhavjibhai Patel, aged 82 years, is the Chairman and Non-Executive Director of the Company.
He holds Bachelor of Science degree and started his career as a school teacher. He has
experience in the clock, electronics and electrical industry. The business established by him in
the year 1971 for manufacturing of mechanical clocks has grown into the Ajanta Group. He is
well respected for his various social activities for development of rural areas and upliftment of
less privileged segment of the society.

Jaysukhbhai O Patel | Managing Director

Jaysukhbhai O. Patel, aged 48 years, is the Managing Director of the Company. He holds a
bachelors in commerce degree and has more than twenty five years of experience in the
manufacturing industry. He has been selected 12 times by the Government of India as a delegate
to visit foreign countries. Prior to his association with our Company, he was primarily involved
in business development and export market development for the products manufactured by the
erstwhile Ajanta Group, like clocks, time pieces, electronic toys, calculators, appliances etc..

Jayesh N Sheth | Director

Jayesh N Sheth, aged 47 years, is an Executive Director of the Company. He holds a bachelor of
commerce degree and has more than 20 years of experience in the field of foreign trade, export,
import and marketing of ceramic, CFL and ACP products. He has has been instrumental in
setting up customer networks for our Company in Middle East, Africa and East Europe.

KIM-KALOL                                                                                      27
OREVA Power Bike


Electrotherm India Limited : Manufacturer, exporter and supplier of electric bikes, hybrid
electric bikes, hybrid electric vehicles, YO bykes, YO exl bykes, YO speed bykes, battery bikes,
no petrol bikes, YO electron ER, YO style, YO electric bikes and YO smart.

Emmel Wheelers: Manufacturer and supplier of electric bike, electric powered bike, battery
operated electric bike, rechargeable electric bicycles, eco friendly electric bicycles and two
wheeler electric bicycles.

Euro II Services: Distributor of a range of electric bikes.

Paradise Electro Auto: Manufacturer, supplier and exporter of electric bike.

Mankoo Manufacturing Co: Manufacturer and exporter of electric bikes.

Vijaya Value Electric Pvt. Ltd: Deals in manufacture of bike, electric bike, electronic bike, self
start electric bike, eco friendly bike and electric two wheeler. Also supplies electric scooter,
electronic scooter and self start two wheeler.

Crazy E- Bike: Leading exporters and manufacturers of electric bike, high speed electric bike,
stylish electric bike, electric motorized bike, electric power bike, electric powered bike, electrical
bike, electronic bike and battery operated bike.

Hero Electric: One of the India’s top Manufacturers of electric bikes.

S. L. S. S. Group: Wholesale exporter of electric bike.

KIM-KALOL                                                                                          28
OREVA Power Bike


STRENGTHS:                            WEAKNESSES:

   Most environment friendly bike      Not suitable for more range of
     with zero pollution.                speed.(80+)

   Only 7 paisa/km                     Lack    of    awareness   about
                                         electrical bikes.
   No gear makes easy drive and
     comfort.                           Very less advertisements about
                                         electrical bikes.
   More safety oriented vehicle.

   Saving of crude oil resources.

   Huge capacity expansion to meet

   Professional management.

   Company is financially strong.

   It has got strong distribution

KIM-KALOL                                                                  29
OREVA Power Bike

OPPORTUNITIES:                                       THREATS:

   Use of Electrical vehicles to drive                 Large number of domestic
     exponential        growth          as     its        competitors.
     noiseless,     less     polluting        and
                                                        Lack of electricity.
     environment friendly.
                                                        Increasing      prices   of   raw
   Launch         of      electrical        three
                                                        Company is under pressure to
   Fuel prices touching the highest
                                                          cut cost to bring down the
     peak rates.
                                                          prices of the bike because
   Government             subsidies           for        competitors are offering at low
     electrical vehicles.                                 price.

   People opt for change in new

   Proud of saving earth from global

KIM-KALOL                                                                                    30
OREVA Power Bike

McKinsey’s Seven ‘S’ Model

       The seven S framework first appeared in “the art of Japanese Management” by Richard
Pascal and Antony Athos in 1981 they had been looking at how Japanese industry has been so
successful, at around the same time that Tom Peters and Robert Waterman were exploring what
made a company excellent. The Seven S model was born at a meeting of the four authors in
1978. It went on to appear in “In search of excellence” By the Global Management Consultancy
McKinsey hence known as McKinsey’s Seven ‘S’ Model.

       Managers, they said, need to take account of all seven of the factors to be sure of
successful implementation of a strategy – large or small .the ot5hers crash around you. Fail to
pay proper attention to one of them it can bring the others crashing around you. And the relative
importance of each factor will vary over time and you cannot always tell how that’s changing.
Like a lot of these models, there’s a good dose of common sense here, but the seven S
framework is useful way of checking that you have covered all the bases.

KIM-KALOL                                                                                     31
OREVA Power Bike

       The “Seven S”(7s) method of examining and understanding companies is a well-known
tool available to managers, providing a succinct overview of the organization. Having a broader
view of a firm is important from a strategic, marketing, organizational behavior and competitive

       At the highest level, the framework illustrates that the management, structure and strategy
of an organization relates through a complex network of interdependent factors within the
organization, each of which is individually and collectively important.

       The 7S model is a tool for managerial analysis and action that provides a structure with
which to consider a company as a whole so that the organizations problems may be diagnosed
and a strategy may be developed and implemented. The seven Ss is a framework for analyzing
organizations and their effectiveness. It looks at the seven key elements that make an
organization successful or not.

The 7S are as follows:

 1. Strategy: Strategy is created to maintain and make competitive benefit over the
 2. Structure: Structure is the way the organization is constructed and who reports to whom.
 3. Systems: In systems the daily activities and events that staff members join in to get the job
 4. Shared values: Shared values are also called “super ordinate goals”. These values are the
centre values of the company that are evidenced in the corporate culture and the general work.
 5. Style: you have to adopt the style of leadership.
 6. Staff: In staff employees and their general capabilities are included.
 7. Skills: Skills are the actual skills of the employees who are working for the company.

KIM-KALOL                                                                                        32
OREVA Power Bike


   Title Of The Project:

         “A study on Customer Satisfaction and perception towards electric bikes with special
reference to Oreva E-Bike ”.

2.1 Research objectives:-

      Basic objective of the research is to study consumer satisfaction level for plans and
product of OREVA E-BIKE.

         To achieve the primary objective, some other secondary objectives are as under.

    To using the OREVA’s service and respondents are satisfied or not.

    Study about awareness of OREVA.

    Study about satisfaction level of the sales station.

    To know the how many persons have prefer other brand.

     To know that which sales promotional tools are more referable the other.

2.2 Data sources :-

         There are two types of data sources which are following:

                   Primary Data

         “The primary data is collected through the survey of cellular market in consumers of

KIM-KALOL                                                                                  33
OREVA Power Bike

                Secondary Data

      “Promotional document of different brands which include price, margins, schemes etc” it
  is collected through Websites, Magazine, Book and Authorized Dealer Shop etc.

      So, in my project I got primary data though fill up questionnaire in general and secondary
  data is used regarding company’s history, vision, mission etc information got through web
  sites, book, magazine etc.

2.3 Research approach :-

   In the research we have used the survey research approach. We have used to identify the
      consumers needs and preference or satisfaction level for OREVA E-BIKE.

Statistical Tools Used For Rreserch:

    Percentage analysis

    Bar graphs & pie charts

    Weighted average

Method of collection

  Questionnaire method:

   A questionnaire is used for the collection of data. And it consists of both close and open
   ended & multiple choice questions.

KIM-KALOL                                                                                    34
OREVA Power Bike

Sampling Design:

Sampling unit           :     Users of Oreva E-Bike in KALOL Area

Sampling size           :

Data Analysis:

        The data collected was edited, coded and tabulated and the results were subjected to
further statistical interventions.

2.4 Limitation of The Study :-

     The sample size that I have chosen is very small to properly represent the entire population.
     The opinions expressed by the respondents might be biased.
     It was difficult to find respondents as they were busy in their schedules and collection of
     data was very difficult. Therefore study had to be carried out based on availability of

     Some of the respondents were not ready to fill the questionnaire and some of them not ready
     to come out openly.

     Due to confidentiality of certain information not all details could be obtained from the

KIM-KALOL                                                                                       35
OREVA Power Bike

      Questionnaire On Customer Satisfaction for OREVA Bike
Dear respondent,
       We are student of “Kalol Institute Of Management” pursuing M.B.A program and as a
part of curriculum, We are conducting a survey on “Consumer Satisfaction towards Oreva
Electric Bikes”. We request your free and genuine response to the following questionnaire.
Information provided by you will be kept confidential and used for academic purpose only.

Q1.    Please state how long you have been using the OREVA E-Bike.

              Less than one year: __________

              1- 3years: ____________

              3- 5 years: _________________

Q2.    What do you feel about price of the Electric Bikes?

       a. Very high

       b. High

       c. Moderate

       d. Low

       e. Very low

Q3.    The reason behind purchasing OREVA E- Bike?

       (rank it: 1 for most important to 5 for less important)

       REASONS                                                        1     2    3     4    5
       E-Bike doesn’t require a license to drive.
       E-Bike is a petrol free and pollution free.
       Anyone can drive or ride it easily.
       It is available at economical prices that one can afford.

KIM-KALOL                                                                                   36
OREVA Power Bike

Q4.   What is your opinion about the long riding of OREVA E-Bike?

      a) Excellent                   b) Average        c) Poor

Q5.   Rank the following attributes according to your opinion regarding OREVA E-Bike.

Attributes                   1              2           3                4              5
Battery life
Power consumption
Pick up

Q6.   Are you satisfied with after sales service?

                     Worst                  Average



Q7.   What is the maintenance cost (Per Month)?

      100rs           200rs             300rs           400rs             above.

Q8.   How do you feel about the overall performance of this vehicle?


      Highly satisfied       satisfied      Moderate   Dissatisfied    Highly dissatisfied

KIM-KALOL                                                                                    37
OREVA Power Bike

Q.9   Please state whether you would recommend our products to others? Why?

                       Yes              No

      Why? _____________________________________________________

Respondent Detail :-
Name of the person :- ___________________________________________________________
Address            :-___________________________________________________________
Occupation         :-___________________________________________________________

                                                          Signatory of Respondent

KIM-KALOL                                                                           38

Tags: Oreva, E-Bike